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Dubai: The total investment in Dubai's expansive Business Bay free zone district is closing in on the Dh200 billion mark. About 90 per cent of the business, commercial and residential areas available for outside investment has already been committed to developers with an overall completion date within the next five to seven years. The latest news on the 64 million square foot project, which will stretch from Shaikh Zayed Road along a new creek to Dubai's coast, was revealed by Hashim Al Dabal, chief executive officer of real estate developers Dubai Properties, a member of Dubai Holding. Planners hope Business Bay will maintain Dubai as the region's business capital, forming a district similar to New York's Manhattan island, which will become home to the world's leading companies.
Al Dabal said UAE developers account for about 40 per cent of the project investment, with approximately 25 per cent coming from other GCC countries. The remaining portion has been snapped up by foreign investors from countries ranging from Germany to South Korea. "I think we have a very good mix of investors," he said. The investment figure from Dubai Properties, which will develop 30 per cent of the Business Bay area, stands at around Dh15-Dh20 billion, with approximately Dh3 billion more invested in infrastructure. The remaining 70 per cent of the project has been set aside for outside investment, which has reached around Dh150 billion. Business Bay projects announced by Dubai Properties so far include the Dh2.5 billion residential Executive Towers, set for completion next year, and the 51-storey freehold office tower, Vision Tower, which has been given a 2008 completion date. Full infrastructure for Business Bay is also expected to be completed in 2008. The total amount invested by Dubai Properties into Dubai real estate projects stands at approximately Dh300 billion. Around half of Business Bay's prime waterfront land will be taken up by commercial developments. A third is committed residential properties with the remaining space set aside for retail areas and public facilities. "You need to establish a combination of developments to make it a viable self-contained community," said Al Dabal. Al Dabal said no development will take place along the banks of the canal, which will serve merely as a transport link and to create a through-flow of fresh water into Dubai creek. He also hinted that the Business Bay area will be extended to cope with demand, but would not reveal exactly where. "We have taken a decision to cross the road next to Business Bay and create a business park zone which we will launch soon," he said. Big bucks! - About 95% of the district has been committed to developers
- Investment is split between 35%-40% (local developers), 20%-25% (Gulf investors) and the rest from international companies.
- Dubai Properties has invested Dh15-Dh20 billion in the development and a further Dh3 billion in infrastructure.
- 45%-50% of the project will be taken up by commercial properties, 30% will be residential and the rest will be retail and public facilities.
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